For a firm operating in two markets and price discriminating the profit maximising condition is ?

Related Mcqs:

1. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

   A. £35
   B. £15
   C. £30
   D. £60

2. A profit maximising firm will invest up to the level of investment where ?

   A. The cost of borrowing equals the marginal efficiency of capital
   B. The cost of borrowing is greater than the marginal efficiency of capital
   C. The cost of borrowing is less then the marginal efficiency of capital
   D. The cost of borrowing equals the marginal propensity to consume

3. A profit maximising firm will employ labour up to the point where ?

   A. Marginal revenue = marginal product
   B. Marginal cost = marginal product
   C. Marginal revenue product = average cost of labour
   D. Marginal revenue product = marginal cost of labour

4. The firm would maximize profit by selling computers in the United States at a price of __________ and _________ computers in Japan at a price of __________?

   A. 200, $2,000, 100 $1,000
   B. 300, $1,800, 800 $800
   C. 300, $1,800, 400 $800
   D. 500, $1,400, 400 $800

5. A firm that makes profit in addition to normal profit is making ?

   A. Economic profit
   B. Accounting profit
   C. Normal profit
   D. supernormal profit

6. For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?

   A. supply curve of capital
   B. demand curve for capital
   C. production function
   D. marginal cost curve

7. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

   A. decreased production
   B. maintained production at the current level
   C. temporarily shut down.
   D. increased production

8. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

   A. Mutual arrangement
   B. Quid Pro quo
   C. Bilateral arrangement
   D. common interest

9. A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?

   A. marginal costs
   B. fixed costs
   C. variable costs
   D. advertising costs

10. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

    A. purchase; decrease
    B. purchase; increase
    C. sell; increase
    D. sell; decrease